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Factors Affecting Regional Shifts Of U.S Pork Production

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  • Adhikari, Bishwa B.
  • Harsh, Stephen B.
  • Cheney, Laura Martin
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    Abstract

    The U.S. pork industry in the recent past has transferred into fewer, larger and specialized operations. Inputs availability, developments of transportation systems, technological changes, government regulations and the consumer preferences have been driving changes in the pork industry. Spatial inequalities affect the competitiveness of one region relative to other regions. This paper is focused on how these forces affect the regional competitiveness of the pork industry and movement towards larger, specialized and geographically concentrated operations. A mathematical programming model is used to analyze the effect of market forces on the pork industry structure. The results of this study show that although raising hogs in larger operations is less costly, small-sized operations in some regions still need to produce hogs to meet the demand for consumption and export. Environmental compliance cost is considered one of the major factors of industry relocation; the analysis showed that the effect of such costs was minimal. Feed costs and transportation costs play a greater role in location of production and processing. Pork operations tend to locate near the populous areas to meet the consumer demand and to minimize the transportation cost. Pressures from current and future environment regulations, moratoria and scarcity of agricultural land for manure management tend to keep the hog operations away from high population areas. A future scenario analysis suggested that the Western region of the U.S. would experience higher growth in pork production. The current trend of fewer and larger production units and location change in the pork industry will continue.

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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22200.

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    Date of creation: 2003
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    Handle: RePEc:ags:aaea03:22200

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    Keywords: Livestock Production/Industries;

    References

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    1. Martin, Laura L. & Norris, Patricia E., 1998. "Environmental Quality, Environmental Regulation And The Structure Of Animal Agriculture," Agricultural Outlook Forum 1998 33267, United States Department of Agriculture, Agricultural Outlook Forum.
    2. Metcalfe, Mark R., 2001. "Environmental Regulation And Implications For Competitiveness In International Pork Trade," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14565, International Agricultural Trade Research Consortium.
    3. Knoeber, Charles R, 1997. "Explaining State Bans on Corporate Farming," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 151-66, January.
    4. John D. Lawrence & V. James Rhodes & Glenn A. Grimes & Marvin L. Hayenga, 1997. "Vertical coordination in the US pork industry: Status, motivations, and expectations," Agribusiness, John Wiley & Sons, Ltd., vol. 13(1), pages 21-31.
    5. Lawrence, John D. & Kliebenstein, James, 1995. "Contracting and Vertical Coordination in the United States Pork Industry," Staff General Research Papers 5050, Iowa State University, Department of Economics.
    6. Hurley, Terrance M. & Kliebenstein, James & Orazem, Peter, 1999. "The Structure of Wages and Benefits in the U.S. Pork Industry," Staff General Research Papers 1475, Iowa State University, Department of Economics.
    7. Robert Innes, 2000. "The Economics of Livestock Waste and Its Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 97-117.
    8. Martin, Laura L., 1999. "Navigating Production Contract Arrangements," Staff Papers 11591, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Hayenga, Marvin L., 1998. "Cost Structures of Pork Slaughter and Processing Firms: Behavioral and Performance Implications," Staff General Research Papers 1254, Iowa State University, Department of Economics.
    10. Gillespie, Jeffrey M. & Eidman, Vernon R., 1998. "The Effect Of Risk And Autonomy On Independent Hog Producers' Contracting Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
    11. Reimund, Donn A. & Martin, J. Rod & Moore, Charles V., 1981. "Structural Change in Agriculture: The Experience for Broilers, Fed Cattle, and Processing Vegetables," Technical Bulletins 157701, United States Department of Agriculture, Economic Research Service.
    12. Alan Barkema & Michael L. Cook, 1993. "The changing U.S. pork industry: a dilemma for public policy," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 49-65.
    13. Hurt, Christopher, 1994. "Industrialization in the Pork Industry," Choices, Agricultural and Applied Economics Association, vol. 9(4).
    14. Hubbell, Bryan J. & Welsh, Rick, 1998. "An Examination Of Trends In Geographic Concentration In U.S. Hog Production, 1974-96," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
    15. Martinez, Stephen W., 1999. "Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products," Agricultural Economics Reports 34031, United States Department of Agriculture, Economic Research Service.
    16. repec:jaa:jagape:v:30:y:1998:i:2:p:285-99 is not listed on IDEAS
    17. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
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    Cited by:
    1. Schluter, Gerald E. & Lee, Chinkook, 2004. "Is There a Link between the Changing Skills of Labor Used in U.S. Processed Food Trade and Rural Employment?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(03), December.

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